how do you short stocks? please explain. do you need a special account?
Yeah, if you have an online account, you have to request for a margin account.
I think that shorting is more easier because losing in the stock market is second nature to us. I have been watching these top movers of the day where it gets pumped up so high with just speculation and not really any results and the next day, it gave some or all back. Shorting it will put money in your pocket when it falls. Also, watch the daily high for a day on any stocks. Ever notice that it never closes at the high for most? Well that's is where you attack. If you have a way to short it at high, you will be making money 90% of the time given the 10% for error rate.
My buddy be shorting it, get out and by next day, he does it again with a different stock since everyday, a new mover of the day gets pumped up. I also made a mistake when I started out by buying when I see a rise. It is going high so buy right? Who would buy when it is tanking right? Well that's how we lose. We go in on the rise and it is a rise too many unless you are going for long then a tank is nothing but a holding tank till she rises again.
Here is a classic case . Check out a stock that I talked about in a previous thread.
NYMX biotech stock. I bought her and was going long but she kept on doing down and down due to her phase 2 trial nothing getting the clear. I took a loss and got out to free up my capital and rode something else. Look at her last 2 days movement. She doubled in two days due to the news that she is going for phase 3 and I'm dying over here. My projection for going long was correct but because i needed to free up my capitals to take a shot at something else, I lost out on a good one.
Short
nymx tomorrow too by the way.
Phase 3 is all projection and it is not proven yet. This company has no revenues and nothing to sell. The stock is moving through speculation and day traders getting in on the action and the shorts are tailing her not too far behind. Phase 3 results will come out in Q2 or Q3. If she tank again, the shorts will win.
To make money, we have to learn how ride her going up and short it when we are about to sell it just to double dip her. When she is at low again, buy to ride up again. Any stocks that is a big rollarcoaster like this will make you rich. Sitting and waiting and hoping can also make you money if you are right but you will not be capitalizing our highest potential. Just like buying an Iphone 10 and using it for calls only. If one must play, play it big and loud. Go big or go home.